Section 3, Article XII of the 1987 Constitution prohibits private corporations from acquiring any kind of alienable land of the public domain.

Sixth issue: whether stipulations in the Amended
JVA for the transfer to AMARI of lands, reclaimed or to be reclaimed,
violate the Constitution.

X x x.

We can now summarize our conclusions as follows:

1. The 157.84
hectares of reclaimed lands
comprising the Freedom Islands, now
covered by certificates of title in the name of PEA, are alienable
lands of the public domain. PEA may
lease these lands to private corporationsbut may not sell or transfer ownership of these lands to private
corporations. PEA may only
sell these lands to Philippine citizens, subject to the ownership limitations in the 1987
Constitution and existing laws.

2. The 592.15
hectares of submerged areas of Manila
Bay remain inalienable natural resources of the public domainuntil classified as alienable or
disposable lands open to disposition and declared no longer needed for public service. The government
can make such classification and
declarationonly after PEA has
reclaimed these submerged areas. Only then can these lands qualify as
agricultural lands of the public domain, which are the only natural resources
the government can alienate. In their present state, the 592.15 hectares of
submerged areas are inalienable and outside the commerce of man.

3. Since the
Amended JVA seeks to transfer to AMARI, a private corporation, ownership of
77.34 hectares[1] of the Freedom Islands, such transfer is void for being contrary to
Section 3, Article XII of the 1987 Constitution which prohibits private corporations from acquiring any kind of alienable
land of the public domain.

4. Since the
Amended JVA also seeks to transfer to AMARI ownership of 290.156 hectares[2] of still submerged areas of
Manila Bay, such transfer is
void for being contrary to Section 2, Article XII of the 1987 Constitution
which prohibits the alienation of natural resources other than agricultural
lands of the public domain. PEA may reclaim these submerged areas.
Thereafter, the government can classify
the reclaimed lands as alienable or disposable, and further declare them no longer needed for public service. Still,
the transfer of such reclaimed alienable lands of the public domain to AMARI
will be void in view of Section 3,
Article XII of the 1987 Constitution which prohibits private corporations from
acquiring any kind of alienable land of the public domain.

Clearly, the Amended JVA violates
glaringly Sections 2 and 3, Article XII of the 1987 Constitution. Under Article 1409[3] of the Civil Code, contracts whose object or purpose is contrary to law, or whose object
is outside the commerce of men, are inexistent
and void from the beginning. The Court must perform its duty to defend and
uphold the Constitution, and therefore declares the Amended JVA null and
void ab initio.

X x x.”

[1]The share of AMARI in the
Freedom Islands is 77.34 hectares, which is 70 percent of the net usable area
of 110.49 hectares. The net usable area is the total land area of the Freedom
Islands less 30 percent allocated for common areas.

[2]The share of AMARI in the
submerged areas for reclamation is 290.129 hectares, which is 70 percent of the
net usable area of 414.47 hectares.

[3]Article 1409 of the Civil
Code provides as follows: The following contracts are inexistent and void from
the beginning: (1) Those whose cause, object or purpose is contrary to law; x x
x; (4) Those whose object is outside the commerce of men; x x x.